HSA Saving Account

Wiley Long asked:


A majority of medical expenditures in this country pay for treatment of chronic conditions that are mostly preventable. Unfortunately, most people don’t take their health seriously until after they get sick. Simply by eating well and exercising, you can avoid the medical conditions and expenses that affect the majority of Americans, allowing the money in your Health Savings Account to continue growing tax-free.

Only You Can Prevent Heart Disease, Cancer, Diabetes…

Most of us go through our lives stuck in our lifestyle patterns, with no idea of the power we have to positively influence our own health. And so by the time we’re in our 40’s most of us are on at least one regular medication. By the time we’re in our 60’s over 85% of all Americans have at least one degenerative disease. And by the time we are in our 70’s we’re dead.

But in fact, a majority of the diseases people suffer from as they age are almost totally preventable.

- Cancer: Researchers from the National Cancer Institute believe that 80-95% of all cancer cases are due to environmental and lifestyle causes, and are thus preventable. Diet may be involved in at least half of all cancers, and one third of all cancers are linked to obesity.

- Dementia: Mark Houston, M.D., Medical Director at Hypertension and Vascular Biology Institute at Saint Thomas Hospital and Medical Center in Nashville, Tennessee, estimates that 95% of all dementia is preventable with a lifestyle approach.

- Heart disease: Numerous studies indicate that 90% - 99% of all heart disease may be preventable.

- Diabetes: One of the nation’s most renowned health researchers, Harvard University’s Walter Willet, has estimated that 92% of type-2 diabetes is preventable.

How to Eat

Probably the very most important factor that can positively affect the health of most people is changing the way they eat. There are many, mostly conflicting theories about what kind of diet is the healthiest. In my opinion, the only one that really makes sense is to eat according to the way we evolved to eat.

The idea of “Paleolithic Nutrition” was first published in the New England Journal of Medicine in 1985 in an article by Dr. S. Boyd Eaton. Since then it has been popularized by Loren Cordain, Ph.D., in his book, The Paleo Diet, and studied by nutritional scientists all over the world. The premise is simple: Our genes determine our nutritional needs.

For over 2.5 million years, humans evolved as hunter-gatherers, and the selective pressures of their lifestyle and diet determined the genes that we have today. Our genetic make-up is exquisitely tuned to function best on the foods that we evolved to eat.

A mere 500 generations ago the Agricultural Revolution brought sudden and dramatic change to our diets, and the changes are continuing to this day. But our genes haven’t managed to keep pace with the change.

Today approximately 2/3 of the foods we eat were those never encountered by our hunter-gatherer ancestors. The result is high blood pressure, diabetes, heart disease, cancer, and a host of other ills that we should not have to suffer.

While most of us do not have access to large wild game and wild-harvested organic produce, the more closely we can mimic the foods that our ancestors ate the better health we will have. So simply base your meals around a lot of fruits and vegetables, along with some lean protein.

You could start by eating eggs and cantaloupe for breakfast. Lunch could consist of a large salad with grilled chicken. For dinner have some wild salmon, asparagus, and salad. Finish off the meal with a big bowl of fresh blueberries.

Exercise

Everyone knows that exercise is good for them, but who wants to spend an hour jogging everyday. (Some people do, but most don’t have the time or desire to go out jogging for an hour every day). What does work to give you the maximum benefit for the least amount of time is exercise with intensity.

So if it’s okay with your doctor, go out and exercise like you mean it. Run wind sprints, lift weights, and exert yourself. And get it done in 30 minutes or less. Combined with the right diet, this kind of exercise will get the most results for the least effort. You will gain more muscle and lose more fat than if you were going out for long slow jogs, and you’ll feel great!

There are of course other factors that affect your health, including stress, sleep, clean air and water, and even genetics. But there’s nothing you can do that will have more impact than eating a good diet and being active.

So be proactive, with both your money and your health. Take advantage of the incredible tax and wealth-building benefits of an HSA by funding it fully every year. And take the right lifestyle measures to avoid the preventable diseases that affect most people as they age. Then in your retirement, you can enjoy the good health and accumulated wealth that you so rightly deserve.



ELISEO

Steven Jackson asked:


As healthcare costs keep rising, the traditional employer paid healthcare coverage is becoming a thing of the past. Because of this constant steep increase in healthcare costs, employers are searching for ways to control costs, and yet still be able to provide health coverage for their employees.

As a result, employers are looking to their employees to take more responsibility for how they use their healthcare.

Health Savings Accounts (HSA) are being offered as an affordable solution. HSA’s have some very friendly tax advantages. Qualified contributions are tax deductible and the qualified withdrawals are tax free. At the same time, they force the taxpayer to be more responsible about how they spend their healthcare dollars.

Ok so can everyone own an HSA? The answer is no. The most important limitation is that individuals must be covered by a qualifying high deductible health plan, also know as HDHP. Once a taxpayer opens an HAS and the fund has a balance, the taxpayer may use it for qualified medical expenses regardless whether the taxpayer remains qualified to make contributions.

Not everyone can open an HSA. The most important limitation is that individuals must be covered under a qualifying “high-deductible” health insurance plan (HDHP) to open an HSA and make contributions to it. Once an HSA has a balance, however, it may be used for qualified medical expenses regardless of whether the individual participant remains qualified to make contributions.

In addition to requiring participation in a high-deductible medical plan, individuals contributing to an HSA also cannot have any disqualifying coverage. Coverage for this purpose is determined on the first of each month, month to month. This is a great feature. It does allow you the flexibility you need, the ability to make contributions in any month of any single tax year.

If you are enrolled in Medicare Part A or Part B, then you are not elgible to participate in an HSA. Medicare Part A and Part B are forms of disqualifying coverage. However, you are still eligible to make contributions if you haven’t enrolled for Medicare yet, even if you are eligible for Medicare.

Additionally, the taxpayer cannot have received any medical benefits from the Veterans Administration for the preceding three months. Furthermore, active and retired members of the military cannot make HSA contributions if they receive benefits under TRICARE, because it does not meet the minimum annual deductible requirement for an HDHP.

I have tried to give a brief overview of HAS accounts in this article. I hope this article has given you some ideas, and I encourage everyone to further research the advantages and limitations of HSA accounts. You can realize great savings by properly managing your healthcare.



JERMAINE

Marc Hart asked:


Another common misconception is that the HSA itself will lower your health insurance costs.

Moving to a high deductible health plan that is HSA compatible will generally lower health insurance premiums usually anywhere from 30 to 50%. Interestingly, most of the time the high deductible plan (HDHP) will save enough premium dollars to cover the increased exposure. In fact, it is rare when a high deductible health plan does not offer less out-of-pocket cost overall (premium expenses plus out-of-pocket risk).

The Health Savings Account simply allows for the saving of tax-deferred dollars for future health care expenses, which may or may not occur. In other words, the risk of having the increased deductible can be eliminated by funding the HSA.

Money is saved by switching to a high-deductible health plan. Benefits are restored by funding the HSA.

Often using the same amount of money previously being spent on health insurance premiums, one can achieve the following benefits by switching to a High Deductible Health Plan that is HSA compatible:



30 - 50% reduction in premiums

Out of pocket risk paid from tax-free savings

Long term saving for health care

Tax deferred savings for anything you want after age 65





 

 

 

What happens to unused funds each year in your HSA?

The money grows tax free and at the age of 65, unused HSA funds may be drawn from as retirement income.

How do you contribute and withdraw money from your Health Savings Account?

Depending on the administrator, bank or trustee of your HSA account, you can generally make contributions in the following ways:



Mail in deposit checks directly to the administrator/bank.

Set up a direct deposit arrangement

From a paycheck withdrawal or directly from an employer





 

 

Withdrawals can be made in several different ways:



Request a reimbursement check by mail from the account administrator

Use a debit card (if available) to pay for expenses from the account

The health insurance carrier can automatically pay for expenses from the HSA.





 

 

Does money need to be in the account in order for an expense to be eligible for reimbursement from the HSA?

No, as long as someone is covered by a a qualified plan and has their health savings account in place, they may be reimbursed from the account at any time in the future for a qualified expense.

It is recommended that accurate records are kept and receipts are saved for any expenses pay for tax-free out of the health savings account.



JOESPH

Andy Devore asked:


Since first being signed into law in December 2003 by the Federal Government, Health Savings Account plans (a.k.a. HSA medical insurance plans) are already a proven success & the number of people switching to HSAs from traditional health plans is growing greatly each year.  HSAs are here to stay & a few million have already come on board.  Health Savings Accounts are literally available today to any person over 18 in the U.S.  They offer significant financial benefits including tax, premium, & retirement savings to you, your family, and/or your business.  Knowledge is real power when it comes to your finances. Become informed.  I advise people not miss out on the extraordinary short & long term benefits that HSAs create.

Medical Insurance is the newest form of an investment vehicle.  Today, having an HSA qualified health insurance policy (component #1 - the health insurance policy) together with a Health Savings Account (component #2 - the savings account) is a very wise decision.  First off, from this point forward, we’ll refer to the two components just discussed above as one single entity, either a Health Savings Account, HSA, or HSA Health Savings Plan.  They all mean exactly the same thing.

HSA health savings plans are actually simple to understand.

A Health Savings Account enables you to:

1) Have access to a wide PPO network and in most all cases provides the coverage to allow you to continue seeing your current doctors & specialists.

2) Lower your health insurance premium by 25% - 50%.  To accomplish this, be sure to compare health insurance plans with different carriers.  An individual can typically save between $80 to $250 dollars per month when they change their plan over from a traditional health insurance plan to a HSA qualified high deductible health savings plan.  A family can save even more.  Now the next point is critical!   Since HSA plans all have higher deductibles than most traditional health plans, forget any negative preconceived notions you may have about having a plan with a high deductible.  Do not pay attention to what you may have heard.  Don’t be deceived.  Yes, you’ll now have high deductible insurance, but there are plenty of safety nets that will be there to protect you if & when the need arises.

After you are setup, the first step to take is to place the money you are saving from having a new lower HSA monthly premium and place it into your new Health Savings Account each month.  Realize that doing this doesn’t cost you anything; you are just transferring the money you are saving into another location.

3) Next, enjoy the IRS created triple tax advantages (see the "a-b-c" listed below) that only HSAs offer.  You can reduce your annual out-of-pocket income taxes up to $1800 or more per year.  Save EVERY year on these income taxes. View below your three main tax-saving pillars.

a) HSA Contributions (deposits into your HSA) are 100% tax free

b) The interest earned on all of your HSA account contributions are also 100% tax free. The choice of investments are yours and range anywhere from typical low-interest, virutally zero-risk bank rates to the widest range of stocks, bonds, & mutual funds. The level of risk is entirely up to you and you can increase or decrease it at anytime.

c) Make 100% tax-free withdrawals for virtually all medical expenses.  View a list of HSA Eligible Expenses.

While your funds grow tax free, you are now building a significant retirement account of up to several hundred thousand dollars.  If you must use the money to cover any part of your deductible, you may make a 100% tax free withdrawal.

Here is the point: All of these above benefits & factors strongly diminish the impact of having a high deductible plan.  Realistically there will be many periods of time where your money is only growing and never being withdrawn because you have little or no medical expenses.

Here’s another benefit.  The Internal Revenue Service (IRS) rule says that at age 65 the money from your Health Savings Account may be withdrawn penalty-free for any reason, not just for qualified medical expenses. In this case, you’ll pay just the regular income taxes, just as you would when withdrawing from your IRA. However, your income during retirement generally goes way down as will the taxes required to pay.  You will be paying much lower income tax on these withdrawals than before you were retired.  Finally, understand that the funds in your HSA are always yours, without exception, and they rollover from year to year.  You are also allowed to do a one time rollover from an IRA into a Health Savings Account without any penalty.

And yes, you may continue contributing to your IRA every year while still also making the maximum allowed HSA contributions.  Having both types of retirement accounts is the ultimate scenario, but if you can afford contributing to only one type…I would certainly recommend the Health Savings Account.  This is because HSAs are more than solely a retirement savings vehicle.  Read another article I have written about improved benefits and higher limits in 2009 .

The company HSAHealthSavings genuinely specializes in HSA plans so consider contacting us (for contact info, read below "About the Author"). The straight truth is that many people are rather unclear about HSA Health Savings Plans and what they truly accomplish.  Too often, an individual or business’s insurance broker has not kept them properly "up-to-date" on all of the many benefits available to them with an HSA.  It is not that these brokers are not competent.  But the question to consider is, what incentives do they really have to educate their clients on HSAs if doing so will lower their commissions?  Not much of one perhaps.  But you are the party who is really losing out.  Any licensed agent or broker is obligated by a legal fiduciary duty to serve his or her client’s best interest at all times.  This duty should be taken seriously, but isn’t typically enforced by the Department of Insurance.

Last but not least, although insurance companies are legally binded to offer HSA health savings plans in their line of products, they are not going out of their way to promote & publicize these plans.  Doing so would also lower THEIR profits.

Now you are probably starting to see the light.  As a consumer today you really have to take matters into your own hands and become authentically informed. The expert advisors at HSAHealth Savings are on a mission as millions of folks and their families are missing out on the tremendous financial benefits that are so readily attainable RIGHT NOW.  We are excited!  The benefits of health savings plans can literally transform one’s financial portfolio in both the short and long term.  And HSAs are actually beneficial for just about everyone, not only the wealthy, or just older folks.  Regardless of your income level, if you pay for health insurance at all, you owe it to yourself to consider and compare the benefits of HSA health savings plans versus the more traditional health plans you are accustomed to.

 



EDWARDO

Ajeet Khurana asked:


Have you recently seen health insurance policies with health savings account tacked onto them? They are actually gaining in popularity and you will find that many of the big insurers offer these types of plans to their subscribers.

The accounts are commonly referred, as HSAs and they are basically saving accounts used for medical purposes only. Those who have a high deductible healthcare plan are eligible for an HAS.

When cash is deposited into this scheme it is not federally taxed but the cash within this may be used for any health related cost and federal income tax does not need to be paid on the money.

If the money is withdrawn for other purposes that are not medically related then there are penalties that will be applicable on it. These penalties are similar to those that are applied to an IRA should the deposits be taken out earlier than retirement.

If you have an HAS then you are more likely to take advantage of this scheme for your healthcare costs irrespective of whether they are current or future costs. That is because the money deposited into this scheme is not federally taxed and you would rather save the money than have to have it taxed by the government.

There are certainly two sides to the insurance plans that offer these accounts and some people are very supportive of them while others are not at all.

Regardless of which side you are on the majority of big health care providers offer the option of a high deductible policy with the account attached.

Some people look at it as a great opportunity to deposit the amount of money they would typically spend on a monthly policy right into their health savings account.

This is a good idea for those who are very healthy and are unlikely to get ill anytime soon, but it doesn’t work very well for those who are already sick or those at high risk of sickness.

The level of happiness with the account is pretty much up in the air at the moment, too. They have only been around since 2003, so there have not been any lengthy studies on them and whether or not they increase an individual’s’ health care options or make them worse.

It is certainly worth considering, however, for people who are in good health that won’t need major healthcare in the next couple years and who can easily save to take advantage of the tax benefits on health savings accounts.

These are the basics of health savings accounts and insurance policies. For the moment you will only be eligible for an HAS if you have a high deductible insurance policy, but that may not always be the case.

Only time will tell how things will work out for the health savings account. But, there will surely be some changes during the meantime as well to ensure the system is working as smoothly as possible and that people are getting the biggest benefit.



JESS

Wiley Long asked:


ndated with medical expenses isn’t anyone’s idea of fun, but many must live through it anyway. One of the biggest problems associated with this problem has nothing to do with the amount of times you visit the doctor, but the amount charged by the hospitals you visit.

Finding the prices at various hospitals can seem impossible and would take some calling and probing around to get list prices or ranges of actual rates. In fact, if you are able to get a “price sheet” from the insurance company, the prices you will see will be rarely paid by any of their visitors. That is because large companies, PPO networks, and Health Maintenance Organizations all negotiate special discounts for their members and employees.

By using medical bill negotiation services (special rates are sometimes available with some Health Savings Account providers), individuals can keep their medical bills smaller and Health Savings Accounts larger. With this type of service, you can get the same discounted prices the above entities receive or better, with no up-front costs. This could end up lowering your medical exposure by hundreds or even thousands of dollars.

Many may wonder how they can tell whether or not they are getting a good deal or not, especially if they are paying for a high deductible health plan. Even if you have a PPO or other insurance provider that offers lower medical expenses, you don’t necessarily have the guarantee of getting the lowest rates. A good bill negotiation service will have an indepth understanding of the costs, and lowest available prices in a geographic area.

Getting a Good Deal on Health Care

There are many ways to lower your annual medical cost. The first way is to simply be a good consumer. Just like with any other purchase, it is important to shop around for the best value, and don’t be afraid to bargain. Individuals don’t typically have the negotiating power to talk down medical expenses with a health care provider, which is why it important to use a service that can do this.

Millions of people are now choosing Health Savings Accounts in combination with a high deductible health plan as the best way to insure themselves. These plans are much less expensive than copay plans, and offer a tax deduction for any money you put aside to cover future medical expenses. But they do have high deductibles, so you still want to pay as little as possible before your insurance coverage kicks in.

The Medical Bill Negotiator

With a medical bill negotiator you can easily try to lower your medical bills. Most companies will require that you have a minimum of $200 in the bill you need reduced. You can sometimes use the website of the negotiating company to submit your claim or you can mail or fax it in. Once the negotiator receives it, they will be able to compare the prices for the same services at different health providers in the geographical area. If there are lower prices, the negotiator will contact the health provider of the claim and attempt to negotiate a lower rate. If successful, the individual will split the savings (usually around 70% for the individual and the rest for the company). If the negotiation wasn’t successful, the individual doesn’t have to pay a penny.

Individuals are saving anywhere from 5 to 80% by using a medical bill negotiating services. Bill negotiation services report savings of 20-37% for imaging and radiology, 15 - 33% for anesthesia, 10 - 80% at surgery centers, and 5 - 48% on dialysis. Patient advocates are available with most companies to assist you and discuss the medical claims you have.

Saving Money is the Main Goal

In this time of rising gas prices and a falling stock market, keeping more money in your Health Savings Account is an everyday hassle. Anything that can help individuals save money is something that should be looked into. This can be even more achievable by using a medical bill negotiator along with your Health Savings Account.

One shouldn’t have to pay retail prices for prescriptions drugs or lab tests - it is always wise to do comparison-shopping. An HSA-qualified health insurance plan can allow individuals to save money in their Health Savings Account to pay for medical expenses. Individuals can also save money on medical expenses by having an insurance agent available to help them shop for the best and most affordable coverage each and every year.

Taking responsibility of medical expenses is what every American must do; and by using these types of services, more money can be saved each year.



ALPHONSE

Arthur Levine asked:


Please feel free to use this article as long as credit is given to the resource box.

Keywords: Disease Prevention, Health Insurance, Health Savings Accounts, Universal Coverage, Health Care, New Middle Aged Group

© Copyright Arthur Levine 2007

Words: 843

There is now a substantial portion of the population in the United States, which is unhappy with their health insurance coverage or lack thereof. There are approximately 46 million uninsured in the US.

Members of the New Middle Aged Group are particularly interested in their health insurance options because many of them lose health care benefits upon retirement. Medicare, which is available at age 65, does not cover everything, and individual or family health care insurance policies are very expensive and for the most part payable with pre tax dollars.

Health care costs in the US keep rising, and in most years health insurance premiums do too often at double-digit rates. .

Disease Prevention expenses as a portion of Gross Domestic Product (GDC) accounts for some 16% of the budget with only 4% spent on Disease Prevention while 50% of Diseases are preventable.

According to the Congressional Budget Office by the year 2020 health care spending which, is already more than $2 trillion dollars (16% of GDP), could easily exceed 25% of GDP.

Americans 65 and older represent about an eighth of the population and one third of health care spending. By 2030 older Americans could account for nearly half of health care spending according to a study by the Centers for Medicare Services.

Government statistics indicate that health care spending by Americans between 1970 and 2005 has increased on average 9.8% per year for private health insurance and 8.9% for Medicare beneficiaries according to the New York Times.

The Republicans by and large favor a private insurance plan called Health Savings Accounts (HSA) to solve the Health Care problem. An overview of this program is that it allows businesses or individuals to contribute a certain amount of money tax free to a HSA (Health Savings Account) and take catastrophe or major medical insurance for the balance. The good part is that it encourages individuals to become Disease Prevention conscious because most of their medical expenses are coming out of their HSA, from which the balance of funds can re rolled over like savings from year to year. In major companies where the program has been instituted savings have been substantial. The drawback is that it tends to draw in young healthy people, and does little to help the aging, sick or uncovered portion of the population.

The Democrats by and large favor some form of Universal Health Care funded by the federal government. The good part is that everyone would be covered. The drawback is that there is no inducement by individuals to practice Disease Prevention because the government is picking up the tab and this might result in a new massive federally funded program that over time cannot be adequately funded by the government as it grows in light of demands from our other entitlement problems such as, Medicare, Medicaid and Prescription Drug Insurance.

Today we find ourselves at the crossroads of escalating Health Care Costs and Health Care funding requirements that have brought us to the point of a collision.

The solution may lie in combining some form of both of these programs utilizing the platform of Health Savings Accounts, which would be federally funded to the extent needed to subsidize them so that everyone could be covered including those with pre existing conditions either through a series of federal corporate or individual tax credits, or with direct contributions in the individual’s name to fund the program, but it is not just about the cost of health care. It’s about finding a solution.

The solution to our health care needs may well lie in practicing Disease Prevention nationally.

The costs of funding this combined approach might be substantially less than under a straight Universal Health Care plan because people would have the incentive to practice Disease Prevention once they understand that it is their money that they are spending on their health care, which can be rolled over from year to year similar to an IRA, and because catastrophe insurance is generally less expensive then the current all inclusive small deductible type insurance program being offered.

To this end, a Disease Prevention Program should be made available to everyone that will help them maintain a better state of health, and enable them to minimize their health care expenses in keeping with good medical practice and the utilization of best care options.

We have to show people how to practice Disease Prevention at the same time that we seek to cover them with Health Insurance if we want to produce a program, which in the long run can be self-funding through medical cost savings.

*****



ALPHONSE

Kevin Powell asked:


A Health Savings Account is an account that is owned by an individual used to pay for current and future medical expenses. These accounts are offered in conjunction with a “High Deductible Health Plan.”

High Deductible Health Plans are health insurance policies that do not cover first dollar medical expenses, other than preventative care. They can also be a:

• HMO

• PPO

• Indemnity plan

Health Savings Accounts were created by the December 8, 2003 Medicare legislation that was signed into law by President Bush. These accounts are modeled after Archer MSAs.

Individuals who are eligible for HSAs include those that are:

• Covered by an HDHP

• Not covered by health insurance

• Not enrolled in Medicare

• Can’t be claimed as a dependent on someone else’s tax return

There are no income limits that contribute to HSAs and people are not required to have earned an income to contribute to an HSA.

There are certain types of medical benefits that will make you ineligible for an HAS. These are typically referred to as “1st dollar” medical benefits, such as:

• Medicare

• Flexible Spending Arrangements

• Health Reimbursement Arrangements

• Tricare Coverage

A high deductible plan is a health insurance with a minimum deductible that is $1,100 for individual coverage and $2,200 for family coverage. Annual out-of-pocket is limited and includes deductible as well as co-pays and are set at $5,500 for individuals and $11,000 for family coverage. All covered benefits in a plan must apply to the plan deductible and include prescription drugs.

If HDHP provides prescription drug benefits, then the prescription drug expenses must be subject to a deductible or the individual may not contribute to the Health Savings Account.

In a high deductible plan, preventative care does not include any service or benefit that is intended to treat an illness, condition or injury that is already in existence. There are certain drugs and medications that can be considered preventative care. These drugs are drugs such as cholesterol-lowering medication for individuals who are suffering from high-cholesterol.

Contributions to a HAS can be made by either the employer or individual and both. If the contributions are made by the employer, the amount is not taxable. If the contribution is made by an individual, the amount is considered an “above the line” deduction.

If others make contributions on behalf of the individual, these contributions can be deducted by the individual as well. As of 2007, individuals are allowed a one-time transfer from their IRA to an HAS as well. There are maximums that are set at $2,850 for self-only coverage and $5,650 for family coverage. Once an individual is enrolled in any type of Medicare, they cannot receive contributions to their account.

Although there are numerous benefits to Health Savings Accounts, there are also a few drawbacks. The main drawback is that you must have your deductible paid before you can receive benefits from your health insurance policy. Although these accounts pay for your basic preventative care, there are certain areas afterwards that may not be covered.

These plans often tend to benefit only two groups of people, those that are very healthy and those that are very ill. This is because you typically don’t have to pay for many medical expenses. At the same time, those who are very ill and do have large medical expenses on a monthly basis. However, once your deductible is met, the plan will pay for medications with the same co-pay as your other medical expenses.



WINSTON

ryan@thesatellitetvguide.com asked:


As the cost of health insurance and medical care continue to rise, more and more people are looking for cheaper alternatives such as Health Savings Account plans (HSAs), to help pay the bills. What are they and where can you find a cheapt HSA? Read on …

What is a Health Savings Account plan?

A Health Savings Account allows you to set aside money to pay for current and future health expenses. The money you put into your HSA is tax-free, although you have to pay a penalty if you withdraw it for non-medical expenses. You can think of an HSA as a “medical IRA.” When you have a medical expense, you just pay for it with a check or debit card that automatically pulls money from the plan. And money that you are not using can be earning interest for future use.

How do I enroll in an HSA?

In order to enroll in an HSA, you must first set up a High Deductible Health Plan (HDHP). An HDHP is an inexpensive “catastrophic” health insurance plan. This type of plan costs less than a traditional insurance plan, freeing up funds to put into the tax-deductible HSA.

An HDHP typically pays nothing for the first several thousand dollars of health expenses you have each year. You pay those expenses out of your Health Savings Account. Once you meet the deductible, the HDHP begins to pay.

You can sign up for an HDHP and an HSA through insurance companies. To find plans that meet your needs, go to an insurance comparison website. There you’ll have access to quotes from multiple insurance companies and will be able to choose the best plan for you. The better insurance comparison websites also have insurance professionals on hand to talk with you and answer all your questions about these plans(see link below).

Visit http://www.LowerRateQuotes.com/health-insurance.html or click on the following link to get Health Savings Account plan quotes from top-rated companies and see how much you can save. You can also get more insurance tips there.



REYNALDO

Marc Hart asked:


The purpose of this short, easy to understand report is to make you aware of the benefits of paying cash to your health care providers.

Health care providers are being educated to the benefits of catering to patients who hold HSAs. Health care providers are being bombarded with high service charges and huge reductions in payment because the giant health insurance companies and HMOs first take their portion and then typically don’t pay the doctor or health care provider for 60 to 120 days or more for his/her services. The average health care provider typically has 2-3 people to administer and maintain this huge cumbersome insurance paperwork system. When you offer to pay cash immediately for health care services, you deserve and will receive a significant discount, many times 50% or more off of what you would normally pay. This is a very important thing to know. The average insured family spends less than $2000 annually for health care. If you get a 50% discount off that for paying cash, your out-of-pocket expense is only $1000 per year.

You will receive a statement with all of the proper coding that you will have for your HSA administrator if you wish a refund later. Your doctor saves dollars because he/she does not need to process your visit through their insurance department and your visit does not have to go through his/her billing department.

You must know and understand how your new HSA works so you can receive every benefit provided. Notify your health care provider before your visit of your intention to pay cash at the time of service and inform him/her that you don’t have direct health insurance. Then ask for their cash discount policy. Simply ask what his/her cash service fees are in comparison to his regular fees. This applies to your dentist, doctor, chiropractor, you name it. It is to your benefit to know exactly at the beginning what your discount and cost for that service will be. The main benefit of having your HSA is that you are now in control of your health care. You are no longer tied to any one specific health care provider and you have the complete choice of who you use. Smart consumers shop for the best deals on everything else, why not health care?



ALEXIS